How To Start A Business In Dubai | Lower Your Costs By Focusing On Year 1
How to start a business in Dubai: Base decision on year 1 needs; paying more for advice can help you reduce costs
How to start a business in Dubai: Yes, starting up a new business in a new country is fraught with risk. In the United States, only 1 in 20 companies lasts for more than 5 years.
Please invest 2 minutes of your time to watch the how to start a business in Dubai video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:
In the United Arab Emirates, 1 in a 100 survives over 5 years and longer.
A typical new company investment budget is US$ 150,000 to US$ 500,000 in the 1st year. Plus funds should be accessible for the usual unforeseen events.
Are your budgets underestimated? If you’re worried that just the cost of company registration is denting your budget, then perhaps your overall business is undercapitalized?
This is not to say that you shouldn’t save money where you can. To help you further put your money to optimum use:
- Let’s relook at your requirements in depth
- There may be scope to redefine your activity and reduce the initial cost
- You may be looking at the business over a 5-year perspective when 1 year may reduce up-front investments
- The cost of visas, activity license, and office space rent would all change dramatically
The base decision on Year 1 needs, Not Year 5
How to find the best fit solution to meet your objectives within your budget?
1. Have a really clear idea about the business you want to do
a. Resist the temptation to include everything in your activity license. This will keep costs in check and give you more jurisdictional options.
b. Remember, just focus on what business activity you will be offering now. Check whether you can add other activities later.
c. You will feel comfortable adding to your license costs when your business starts earning money
2. Decide on the number of visas you will need in the 1st year only
a. More visas mean more office space which means higher rents and higher registration costs
b. You can add this later
3. Be clear about your customer or supplier locations
a. If you are selling to the government of any Emirate you must be in that Emirate
b. If you are importing via a seaport, better to be close to that port
c. If it doesn’t matter where you are located, look at where you want to stay, or the cheapest
4. Total cost is important for your business, not just the cost of registration
a. Choice of Emirate, office rent, # of visas, and # and type of activities will determine basic costs
Paying Varal more can help you reduce costs
Does that sound counter-intuitive?
By now you know that available are 2,000+ activity licenses and 28+ jurisdictions to choose from. Many jurisdictions have bundled packages of visas, activity & office space.
You are also aware of what the jurisdiction’s costs consist of.
So naturally, Varal is in a good position to help you reduce your overall company registration costs. Wouldn’t you want to increase Varal’s incentive to reduce your total costs?
You need to use experience, knowledge, and expertise to explore possibilities in:
- Activity license fee
- Choose a less expensive one that meets your objectives
- Office rent
- See how many visas you need in the 1st year only
- # of shareholders
- Focus on the individual instead of corporate
- Find a less expensive jurisdiction that also meets your needs
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